Deleveraging Pushes the Dollar Up

By: admin
Published: November 29th, 2008


From Seeking Alpha

In recessions, cash is short and businesses and individuals seek to raise cash by any means practical in order to prepare themselves for the tough times ahead. In a world in which U.S. currency is held as the global reserve, cash means U.S. dollars. In short, institutions and individuals are selling any asset that is not nailed down (stocks, corporate bonds, etc.) and buying U.S. dollars. This has resulted in plummeting asset prices and a rising dollar. However, this dynamic cannot exist in perpetuity.

VN:F [1.9.22_1171]
Rating: 5.0/5 (2 votes cast)
VN:F [1.9.22_1171]
Rating: +1 (from 1 vote)
Deleveraging Pushes the Dollar Up, 5.0 out of 5 based on 2 ratings
More on this topic (What's this?)
U.S. Dollar Value Could Suffer Instant Change
Daily ETF Trend Report – Currency
Read more on U.S. Dollar (USD), Leverage, Currency at Wikinvest
This entry was posted on Saturday, November 29th, 2008 at 1:39 am and is filed under Chart, Fx. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

0 Comments on “Deleveraging Pushes the Dollar Up”

Subscribe to this post's RSS feed

0 Trackbacks/Pings (Trackback URL)

Leave a Reply




Comment:

Recent Entries

Recent Comments

Social Network









the Cynical Economist at Blogged
Wikio - Top Blogs
Share Add to Technorati Favorites http://www.wikio.com TopOfBlogs